SDG 9: Industry, Innovation and Infrastructure | SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Ministry of Commerce & Industry | Ministry of MSMEs | Ministry of Steel | Ministry of Communications | Ministry of Chemicals & Fertilizers
During the state visit of Brazilian President Luiz Inácio Lula da Silva on February 21, 2026, India and Brazil significantly deepened their strategic partnership through five landmark MoUs targeting MSMEs, pharma, steel, postal sector and trade. Union Minister Shri Piyush Goyal called for an ambitious trade surge beyond the current USD 15 billion, characterizing the existing engagement as “suboptimal” despite a 25% growth in the past year. The new roadmap focuses on leveraging Brazil’s critical mineral wealth—including lithium, niobium, and iron ore—to secure India’s steel and energy transitions, while simultaneously integrating the two nations’ MSME sectors through green finance and sustainable technology. With India now enjoying preferential access to nearly two-thirds of global trade via high-quality Free Trade Agreements (FTAs), the expanded India–MERCOSUR partnership is positioned to reshape global value chains through shared innovation and “South-South” cooperation.
Five Pillars of the India–Brazil Strategic Roadmap
Steel & Mineral Security: Establishing an institutional framework for sustainable development of raw materials like manganese, nickel, and niobium to support India’s goal of expanding steelmaking capacity to 218 million tonnes. This includes joint investments in mining infrastructure and the use of Artificial Intelligence for geoscientific data analysis to enhance exploration.
MSME Green Transition: Creating a platform for MSMEs to explore mutual benefits in technology and market access, with a specific focus on advancing the green transition. The MoU facilitates access to green finance, enabling small businesses to integrate into global value chains while improving their productivity and capacity for sustainable development.
Pharma & Medical Regulatory Convergence: Strengthening bilateral cooperation through a structured framework between India’s CDSCO and Brazil’s ANVISA to exchange information on pharmaceutical ingredients, drugs, and medical devices. This aims to promote convergence in regulatory practices and ensure the availability of safe, quality-assured, and affordable healthcare solutions in both nations.
Global Trade & Investment Democratization: Expanding the India–MERCOSUR Preferential Trade Agreement to enhance market access and foster technology partnerships in emerging tech, aerospace, and renewables. This pillar leverages India’s record USD 80 billion FDI (FY 2025) to promote outward investment and empower Indian industry to expand internationally.
Cooperation in the Postal Sector: Establishing a five-year institutional framework to modernise postal systems through cooperation on digital transformation, e-commerce logistics, financial inclusion, capacity building, and coordination in multilateral postal forums.
What is the “India–Brazil Steel Supply Chain” MoU? This institutional framework aims to secure the long-term growth of India’s steel sector by leveraging Brazil’s status as a top global producer of iron ore and niobium. Beyond simple trade, the MoU focuses on the “technology-led” transformation of the value chain, including the use of Artificial Intelligence (AI) for geoscientific data analysis and the adoption of advanced mineral processing and recycling technologies. This ensures that as Indian companies expand their steelmaking capacity to meet massive infrastructure demand, they do so with a resilient, data-driven, and environmentally sustainable supply of critical raw materials.
Policy Relevance
For India, the Brazil partnership represents a transition from “Regional Engagement” to “Global Supply Chain Sovereignty,” anchoring its industrial growth in reliable “South-South” alliances.
Standardizing “South-South” Regulatory Convergence: The CDSCO–ANVISA MoU ensures that Global South partners set their own high-quality benchmarks for affordable medicine.
Bypassing Resource Volatility: By securing long-term access to Brazilian lithium and niobium, India can bypass the global price fluctuations that threaten its energy transition and high-tech manufacturing.
Operationalizing MSME Green Growth: Providing green finance access for MSMEs ensures that the smallest engines of the Indian economy are pre-aligned with global sustainability goals.
Federal Economic Momentum: With real GDP growth exceeding 8%, India’s push to become the third-largest economy is directly aided by the USD 80 billion FDI attracted in FY 2025.
Implementation Fidelity via Data-Driven Mining: The use of AI in geoscientific data analysis ensures that mineral exploration under the new MoU achieves high precision and technological efficiency.
Relevant Question for Policy Stakeholders: How can CDSCO utilize the new MoU to synchronize clinical trial benchmarks with ANVISA, reducing the time-to-market for Indian biological products in Latin America?
Follow the full update here: India–Brazil Strategic Partnership